pretivm march 2013 web
TRANSCRIPT
Corporate PresentationMarch 2013
CAUTIONARY STATEMENT
Forward Looking InformationThis Presentation contains ‘‘forward-looking information’’ within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information may include, but is not limited to, information with respect to the anticipated production and developments in our operations in future periods, our planned exploration and development activities, the adequacy of our financial resources, the estimation of mineral resources, realization of mineral resource estimates, costs and timing of development of the projects we currently intend to acquire (the “Projects”), costs and timing of future exploration, results of future exploration and drilling, timing and receipt of approvals, consents and permits under applicable legislation, our executive compensation approach and practice, the composition of our board of directors and committees, and adequacy of financial resources. Wherever possible, words such as ‘‘plans’’, ‘‘expects’’ or ‘‘does not expect’’, ‘‘budget’’, ‘‘scheduled’’, ‘‘estimates’’, ‘‘forecasts’’, ‘‘anticipate’’ or ‘‘does not anticipate’’, ‘‘believe’’, ‘‘intend’’ and similar expressions or statements that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or ‘‘will’’ be taken, occur or be achieved, have been used to identify forward-looking information. Statements concerning mineral resource estimates may also be deemed to constitute forward-looking information to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as ‘‘expects’’, ‘‘anticipates’’, ‘‘plans’’, ‘‘projects’’, ‘‘estimates’’, ‘‘assumes’’, ‘‘intends’’, ‘‘strategy’’, ‘‘goals’’, ‘‘objectives’’, ‘‘potential’’ or variations thereof, or stating that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or ‘‘will’’ be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information. Many of these risks are listed and described in our final short-form prospectus dated March 19, 2012 (the “Prospectus”), which is available for review on SEDAR at www.sedar.com under our profile. Although we have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Forward-looking information involves statements about the future and is inherently uncertain, and our actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Prospectus under the heading ‘‘Risk Factors’’. Our forward-looking information is based on the beliefs, expectations and opinions of management on the date the statements are made, and we do not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking information.National Instrument 43-101Technical and scientific information contained herein relating to the Projects is derived from National Instrument 43-101 (“NI 43-101”) compliant technical reports (“Reports”) “Technical Report and Updated Preliminary Economic Assessment of the Brucejack Project” dated February 20, 2012 “Mineral Resources Update Technical Report” dated April 3, 2012, “Mineral Resources Update Technical Report” dated September 18, 2012 and “Mineral Resources Update Technical Report” dated November 20, 2012. We have filed the Reports under our profile at www.sedar.com. Technical and scientific information not contained within the Reports for the Projects have been prepared under the supervision of Mr. Kenneth C. McNaughton, an independent “qualified person” under NI 43-101.This presentation uses the terms “measured resources”, “indicated resources” (together “M&I”) and “inferred resources”. Although these terms are recognized and required by Canadian regulations (under NI 43-101), the United States Securities and Exchange Commission does not recognize them. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no guarantee that all or any part of the mineral resource will be converted into mineral reserves.In addition, “inferred resources” have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre feasibility studies, or economic studies, except for a Preliminary Assessment as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. CurrencyUnless otherwise indicated, all dollar values herein are in Canadian $.
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An investment in Gold
Significant high-grade gold resource:
Valley of the Kings8.5 M oz gold Indicated (16.1 Mt @ 16.4 g/t gold)2.9 M oz gold Inferred (5.4 Mt @ 17.0 g/t gold)
Located in British Columbia, Canada
Underground feasibility study Q2 2013
Commercial production target early 2016
Kirkland Lake Mine(Kirkland Lake)
Kensington Mine(Coeur)
Casa Berardi(Aurizon)
El Penon Mine(Yamana)
Red Lake Mine(Goldcorp)
Pogo Mine(Sumitomo)
Valley of the Kings
F2 Deposit(Rubicon)
Buritica(Continental)
Cerro Negro(Goldcorp)
Eleonore(Goldcorp)
Cerro Moro(Yamana)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0
M&
I + In
ferr
ed G
old
Gra
de (g
/t)
M&I + Inferred Gold Resources (mm oz)
HIGH-GRADE GOLD WITH SIZE
4November 2012 Valley of the Kings High-Grade Gold Mineral Resource based on a cut-off grade of 5.0 grams of gold-equivalent/tonne.Data sources: Intierra Ltd., NRH.
Indicated Gold: 8.5 mm oz @ 16.4 g/t AuInferred Gold:2.9 mm oz @ 17.0 g/t Au
BRUCEJACK PROJECT LOCATION
5
EXPLORATION AND OWNERSHIP HISTORY
1960-1980
1980-1985
1986-1989
1990
1993
1999-2000
2009
2010
2011-2012
2013
Exploration by various
companies
West Zone discovery and definition by Newhawk
5.3 km underground
development of West Zone
West Zone Feasibility Study
completed
Acquisition by Silver Standard Resources Inc.
Exploration resumes. Discovery of Valley of
the Kings Zone
Acquisition by Pretivm
Extensive exploration program, high-grade
resource, exploration road Mine Development Certificate issued
Valley of the Kings underground bulk
sample and feasibility study
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BRUCEJACK HIGH-GRADE RESOURCE
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(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. The Mineral Resources in this news release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.(2) The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.(3) Contained metal may differ due to rounding.(4) The Mineral Resource estimate is defined using 5 m by 5 by 5 m blocks in the well drilled portion of West Zone (5 m by 10 m drilling or better) and 10 m by 10 m by 10 m blocks in the remainder of West Zone and in Valley of the Kings.(5) The gold equivalent value is defined as AuEq=Au + Ag/53
Valley of the Kings Mineral Resource Estimate –November 2012(1,4,5)
(Based on a cut-off grade of 5.0 grams of gold-equivalent/tonne)
Category Tonnes(mil)
Gold(g/t)
Silver(g/t)
Contained(3)
Gold(mil oz)
Silver(mil oz)
Indicated 16.1 16.4 14.2 8.5 7.3Inferred(2) 5.4 17.0 15.7 2.9 2.7
VALLEY OF THE KINGS INDICATED RESOURCE
Northing (± 25 m)
Ind.Gold*(Oz.)
6258225 230,900
6258175 484,000
6258125 703,100
6258075 336,600
6258025 1,951,100
6257975 2,365,900
6257925 1,021,000
6257875 513,600
6257825 687,500
6257775 176,400
Total Ounces per 100 m Easting and 50 m Northing strips
Valley of the KingsIndicated Mineral Resource:
8.5 Moz. Au @ 5.0 g/t AuEq.(16.1 Mt @ 16.4 g/t Au)
*Nov. 2012 Indicated Mineral Resource;≥5.0 g/t AuEq.
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1,092,100 1,776,900 1,467,600 2,185,800 1,391,000 380,100 192,900 Ind. Au* (Oz.)
MINERAL RESOURCE CONTINUITY
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Total Ounces* per 10 x 100 m N-S corridor – 6257800 N Long SectionLevel (m) Ind. Gold (Oz)*
1540-1570 116,300 1510-1540 499,700 1480-1510 734,800 1450-1480 510,400 1420-1450 365,450 1390-1420 566,700 1360-1390 631,700 1330-1360 364,800 1300-1330 527,400 1270-1300 992,000 1240-1270 998,200 1210-1240 521,950 1180-1210 213,050 1150-1180 246,800 1120-1150 294,600 1090-1120 393,900 1060-1090 317,600
WW EE
100 m100 m
4,000-6,0006,000-7,0007,000-8,000
>10,000
Key (Oz. Au)
3,000-4,0001,000-3,000<1,000
8,000-10,000Total Ounces per level(Valley of Kings Zone)*Nov. 2012 Indicated Mineral Resource;≥5.0 g/t AuEq.
CONTINUITY: HIGH GRADE BLOCKS
10Indicated and Inferred blocks greater than 5 g/t AuEq
Valley of the Kings block model – 426550E section view West (+/- 50m)
CONTINUITY: HIGH GRADE BLOCKS
11Indicated and Inferred blocks greater than 5 g/t AuEq
Valley of the Kings block model – 426600E section view West (+/- 50m)
1212
100 m
CONTINUITY: HIGH GRADE BLOCKS
Valley of the Kings block model plan view - 1300m level (+/- 25m)
1313
100 m
CONTINUITY: HIGH GRADE BLOCKS
Valley of the Kings block model plan view - 1250m level (+/- 25m)
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MAIN MINERALIZED DOMAINS
West Zone UndergroundDevelopment
Valley of the Kings Bulk
Sample
S N
Domain 17
Domain 11
200 m
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BULK SAMPLE LOCATION
0.5-5.0 g/t AuEq
5.0-15.0 g/t AuEq
>15.0 g/t AuEq
Key
S N
West Zone UndergroundDevelopment
Valley of the Kings Bulk
Sample
200 m 10,000-tonne bulk sample from Valley of the Kings planned (Q2/Q3)
5 X 5 meter slashing of existing West Zone workings completed
Turned towards Valley of the Kings, with over 250 meters now completed
546 meters
HIGH-GRADE CORRIDORS
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Valley of the Kings Drill Hole Trace Bar Graphs – 426630E Section View
Mineralization Corridor
Bulk sample
BULK SAMPLE LOCATION
17
Vertical viewing window ±8.5 m
1345 m Level
17
Key (Domain)
11
BULK SAMPLE LOCATION
18
5-10
10-20
20-60
>60
Key (g/t AuEq)
2.5-5
1-2.5
0.3-1
1345 m Level
Vertical viewing window ±8.5 m
Siltstone, litharenite, pebble conglomerateSiltstone, litharenite, pebble conglomerate
Polylithic ConglomeratePolylithic Conglomerate
Fragmental Volcanic Rocks
Fragmental Volcanic Rocks
Intensely Silicified
Conglomerate
Intensely Silicified
ConglomerateHbl-phyricLatite FlowHbl-phyricLatite Flow
BULK SAMPLE LOCATION
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5-10
10-20
20-60
>60
Key (g/t AuEq)
Only Indicated blocks greater than 5 g/t AuEq shown
1345 m Level
Vertical viewing window ±8.5 m
Siltstone, litharenite, pebble conglomerateSiltstone, litharenite, pebble conglomerate
Polylithic ConglomeratePolylithic Conglomerate
Fragmental Volcanic Rocks
Fragmental Volcanic Rocks
Intensely Silicified
Conglomerate
Intensely Silicified
Conglomerate
Hbl-phyricLatite FlowHbl-phyricLatite Flow
TYPICAL SAMPLE TOWER FLOWSHEET
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UNDERGROUND DRILLING
21
PHASE IV
N
SN
Typical Section – Fan Drilling
VISIBLE GOLD/STOCKWORK
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2323
Corridors of high-grade visible gold seams within lower grade (5g/t to 20g/t) gold quartz stockwork
Steeply dipping ore body
Competent ground conditions
Stope widths (15m wide X 30m high) appropriate both for transverse and longitudinal layouts
Cost effective
First 50 meters of Valley of the Kings ramp
Long hole stoping mining method:
MINING METHOD FOR STOCKWORK
PROPOSED MINE DEVELOPMENT
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Oblique View of Mining Stopes, Valley of the Kings
S
N
100 m
MINE AND MILL SITE LAYOUT
25
Crushing
Grinding
Gravity Concentrate Circuit
Doré (50%-60%)
Flotation Concentrate Circuit
Off-take (40%-50%)
Flowsheet Summary:
BRUCEJACK PROJECT ECONOMICS
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(1) Source: Technical Report and Updated Preliminary Economic Assessment of the Brucejack Project, effective date February 20, 2012
(2) Base case metals prices of US$1,100 /oz gold and US$21/oz silver
PEA is based on Mineral Resource estimates for the Valley of the Kings and West Zone effective November 28, 2011 which are now out-of-date.
February 2012 Preliminary Economic Assessment Results(1,2) :Processing rate 1,500 tpd
Mine life 24 years
Total gold production 6.9 million oz
Average annual gold production (Yrs 1-12)
325,000 ounces
Capex US$436.3 million
Total operating costs C$170.90/t milled
Internal Rate of Return
29.8%
Net Present Value (5% discount)
US$2.262 billion
Processing rate increased 2,700 tonnes per day
Mill facilities streamlined Flotation concentrate to be sold to
3rd parties rather than refined on site
Capex and Opex savings, reduced project footprint
Metallurgy continues to be positive Feasibility metallurgical studies
confirm gold recoveries over 95%
Feasibility Study (expected Q2):
2013 BRUCEJACK PROJECT PLANS
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H1 2013
Access ramp to Valley of the Kings is underway, with over 250 meters completed out of 546 meters in total
Channel sample the ramp to Valley of the Kings
Underground sampling/drilling Valley of the Kings
10,000-tonne underground bulk sample from Valley of the Kings
Feasibility study completed
H2 2013 (post bulk sample)
Process bulk sample
Potential Valley of the Kings expansion drilling
COMMUNITY ENGAGEMENT
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Pretivm’s management team has been cooperatively engaging with First Nations and local community leaders in the Stewart, BC region for over 10 years
We work to ensure that our communication about the progress of the Brucejack Project is open and continuous
Commercial relationships with local First Nations developed during the exploration phase at Brucejack have been mutually successful
We will continue to extend both commercial contract and employment opportunities to locals whenever possible
Stewart warehouse constructed by development corporation of Skii km Lax Ha First Nation
BRUCEJACK PERMITTING
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1986
1989
1993
1998
1999
2006
2011-2012
2013
Reclamation Permit(MX-1-86)
Mine Development Certificate issued
April 15, 1993(MDC 92-06)
Project Assessment Certificate
(PAC 98-03)
Permitted for exploration and exploration road
(Pretivm) (MX-1-832), (MX-1-842)
Project Assessment Certificate allowed to
expire (Silver Standard)(PAC M98-03)
Approval in principle for
development of a mine at West Zone
Reclamation Completion(Silver Standard)
(MEND 9.1c)
Project Description under review for underground
mine at Brucejack’s Valley of the Kings
Brucejack Lake is not fish habitat Waste rock from 1980’s/1990’s
underground development was deposited in Brucejack Lake as part of 1999 reclamation
More than 50% of tailings (targeting 60%) to be used for paste backfill and deposited underground, with remainder of tailings to be deposited in bottom 30 meters of Brucejack Lake
PRETIVM MANAGEMENT
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Robert Quartermain, B.Sc., M.Sc., P.Geo, D.Sc. President & Chief Executive Officer, Director
Peter de Visser, CAChief Financial Officer
Joseph Ovsenek, B.A. Sc., P.Eng., LLBVice President & Chief Development Officer, Director
Ken McNaughton, M.A. Sc., P.Eng.Vice President & Chief Exploration Officer
Ian I Chang, M.A. Sc., P.Eng.Vice President, Project Development
Michelle Romero, B.A., M.L.S.Director, Corporate Relations
Kevin Torpy, B.Sc.Director, Mine Engineering
Warwick Board, Ph.D., P.Geo. Chief Geologist
Max Holtby, B.Sc., P. Geo.Director, Permitting
Andrew Saltis, I.Eng.Site Project Manager, Mine Manager
SHAREHOLDING & ANALYST COVERAGE
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Institutions, 50%
Retail, 23%
Management, 5%
Silver Standard,
20%
Capital Structure(1)
Public Float 77.5Silver Standard Shares 19.0 Total Issued & Outstanding Shares 96.5 Incentive Options 8.5Total Fully Diluted Shares 105.0
Market Capitalization C$788 million
Working Capital (at Dec. 31, 2012) C$30.1 millionShare Offering gross proceeds (at February 15, 2013)(3) C$21.0 million
Top Shareholders(2) (shares in millions)
Silver Standard Resources 18.986Royce & Associates 10.689Passport Capital 5.386 Fidelity Management 3.720Connor, Clark & Lunn 2.602Robert Quartermain 2.853 TD Asset Management 2.153Carmignac Gestion 1.898Sprott Asset Management 1.718
Analyst CoverageBMO John HayesCIBC Jeff KilleenCitibank Alex HackingCormark Securities Richard GrayDahlman Rose Adam GrafGlobal Hunter Securities Jeff WrightGMP Securities TBDRBC Dan RollinsSalman Partners Ash GuglaniScotiabank Ovais HabibUBS TBDVery Independent Research John Tumazos(1)As of March 15, 2013; ownership calculated on an undiluted basis.
(2)As of March 15, 2013. Source: IPREO, SEDI(3)See news release dated February 15, 2013
(shares in millions)
HIGH-GRADE GOLD PRODUCTION
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MeadowBank (Agnico Eagle)
Laronde (Agnico Eagle)
Hycroft (Allied Nevada Gold)
Kemess (Aurico)Casa Berardi Mine (Aurizon Mines)
Ruby Hill (Barrick)
Round Mountain (Barrick / Kinross)
Turqouise Ridge (Barrick / Newmont)
Red Lake (Goldcorp)
Musselwhite (Goldcorp)
Marigold Mine (GoldCorp/Barrick)
Fort Knox (Kinross)
Kirkland Lake (Kirkland Lake Gold)
Mesquite (NewGold)
Carlin (Newmont)
Canadian Malartic (Osisko) Valley of the Kings (Pretium )
Detour Lake Mine (Detour Gold)
0
100
200
300
400
500
600
700
0 2 4 6 8 10 12 14 16 18
Ann
ual G
old
Prod
uctio
n (K
oz/y
ear)
Grade (g/t)
Average gold production vs. grade for various North American producing mines with >2Moz Au
Data sources: Companies, NRH.
Production target:400k-500k oz/year@ 14g/t -16g/t head grade
CONTACTPhone: 604-558-1784Fax: 604-558-4784Toll-free: [email protected]
HEAD OFFICEPretium Resources Inc.570 Granville St.Suite 1600Vancouver, BCCanada V6C 3P1
COMMON SHARESTSX/NYSE:PVGIssued: 96.5 millionFully diluted: 105.0 million52-week hi/low: $17.41/$7.11Market cap: $788 million
Advancing a major high-grade gold resource in Canada